US Automakers informed that there has been a sharp rise in sales of vehicles during summer. Interestingly, the sales rose despite high prices and rising rates of interest. Even a limited strike against the top three Detroit companies did not see a fall in sales of vehicles.
According to USNews.com,
“Industry sales rose 16.3% from July through September as consumer demand stayed strong, even given an average new vehicle loan rate of 7.4% and an average vehicle price of more than $45,500.”
During the pandemic, there were shortages of computer chips and other parts. Automakers are now recovering from this problem. As more people bought vehicles, there was increased selection, despite an average monthly payment of $736. However, many industry experts were of the opinion that these purchases are fully based on replacement and needs.
Since the start of the pandemic in 2020, there has been a rise in pent-up demand. This is because many people delayed their purchases while waiting for the prices to go down with increased supplies. However, then the Federal Reserve raised interest rates, which made sales more unlikely.
From July to September, US automakers sold just short of 4 million vehicles. Honda saw an increase of 53.7%, General Motors with a 21.2% increase, and Toyota’s sales increased by 12.2%. On the other hand, Nissan saw an increase of 40.8%, Kia with an increase of 13.8%, and Hyundai posted an increase in sales by 10.2%.
Various analysts also reported that the strike by United Auto Workers against car manufacturers like Ford, Stellantis, and General Motors had little impact on the sales of vehicles.